Brazil may be the Owner of 20%

of the Worlds Water Supply but

it is still Very Thirst
If Brazil has nearly a fifth of the worlds water reserves, then why are water shortages so
often in the news lately?
There are many answers to that question, ranging from the way in which water resources
are geographically distributed and the degradation of the areas surrounding river basins to
climate change and poor supply infrastructure.
The sectors that most contribute to the economy are also those most dependent on water.
For example, 62% of Brazils energy is generated through hydropower plants. Water is also
essential for agriculture, another important sector of the countrys economy. According to
the National Water Agency (ANA), irrigation consumes 72% of Brazils water supply.
This dependency means that when there is a water shortage as evidenced by the
experience in San Paulo in 2014 and 2015 the productivity of different economic sectors
may be at risk.
These and other topics are examined in the new World Bank report, the Systematic Country
Diagnostic, which discusses how natural resources can contribute to the countrys
economic development.
"For a few months in Sao Paulo, it was not clear whether industries such as the aluminum
industry, a large water consumer, could continue at the same level of production as before
the crisis, said Gregor Wolf, head of the World Banks Sustainable Development Program
in Brazil.
The report reviews key aspects of Brazils water resource management and analyzes the
main obstacles that must be overcome in order to establish a sustainable, comprehensive
model.
Water, forests and cities

In light of the growing scientific evidence on deforestation, forest degradation and changes
in rainfall patterns, the report warns that water crises such as the current one in Sao Paulo
could become commonplace over the next four decades. These events could affect the
water supply, agricultural production and energy generation, among other activities. The
study also highlights the reduction in deforestation of the Amazon in recent years (by 82%)
and regulations such as the Forestry Code, which were developed to help protect natural
resources in rural areas. These are recent successes following decades of devastation.
There is also a growing need for continual monitoring to ensure that those resources will not
be lost.
The most water-dependent
Brazil is the worlds second-largest food exporter. In a country where agriculture and
agroindustry account for 8.4% of GDP, irrigated lands have increased exponentially over the
past decade and water consumption is expected to continue to rise. Currently, less than
20% of irrigated lands have access to irrigation. In the energy sector, hydropower plants will
continue to generate most of Brazils electricity even with the diversification of energy
sources planned over the next two decades.
The worst-polluting sector
Industry continues to be a leading contributor to environmental degradation in Brazil.
According to the World Bank report, researchers found industrial effluents, including heavy
metals, in water bodies in several metropolitan areas. Industrial wastewater is discharged
into waterways without prior treatment. In Sao Paulo and Recife, for example, this has
made surrounding rivers unsafe sources of potable water, thereby forcing the cities to
procure water from distant basins or from wells. The expected growth of industrial
complexes, particularly in the Northeast, will potentially result in long-term environmental
impacts, such as pollution and the competition for natural resources (mainly water).
Unequal access to water and sanitation
Among the poorest 40% of the population, the percentage of households with toilets
connected to the sanitation network rose from 33% in 2004 to 43% in 2013. Nevertheless,
access is still low compared with the wealthier population. Other key differences are
apparent in figures for national water coverage (82.5%), wastewater (48.6%) and real
wastewater treatment (39%). The lack of wastewater treatment means that pollutants are

discharged directly into the water or processed in unregulated septic tanks, with serious
consequences for water quality, and consequently, for the well-being of the population.
What needs to be improved?
Many water companies suffer significant water losses (more than a third of the supply, on
average), have excess staff and high operating costs. The financing of the sector is based
on crossed tariffs and subsidies, with an obsolete tariff structure incapable of generating
more efficient, sustainable services. The result: the companies have insufficient capital to
increase coverage and to make the infrastructure more resilient to extreme climate events
(droughts and floods).
The report also stresses that the quality of life of Brazils poorest citizens is closely related
to the management of water and other natural resources, for which reason policies are
urgently needed to conserve them.