Water
and Business
Make Sibambo owns one of her South African
village’s only
refrigerators and sells ice from her home.
Deepa washes clothes for middle class families in a river in
southern India. Umar owns a restaurant near a bus terminal in
Pakistan.
Mario washes fruit for a banana company in Honduras.
What do these individuals have in common?
Their livelihoods depend upon access to water. Without water, Make
could not sell her ice, Deepa would have no means of washing clothes,
Umar could not sell food, and Mario would not have his job with
the banana company.
Businesses demand water.
All types of business require water to produce their products
and offer their services.
Water is necessary for the development
of informal home businesses. Water is essential for personal enterprises such as vegetable
gardens, food confection, and laundry services. In many cases,
these tiny businesses have no formal right to the water they
use and are at the mercy of larger economic and political players
for their water usage. For example, Deepa washes clothing in
a local river that is increasingly being polluted with sewage
and agricultural runoff. She can do little to protect the precious
resource that her job depends upon.
Water is also important for small and medium
businesses such as Umar’s restaurant in Pakistan. Umar relies on clean
water to provide his customers with safe food and sanitary conditions.
The price of the water is a major factor affecting his profits.
When the city water supply runs dry, he has to pay a tanker to
bring in extra water. Having to do this too much could encourage
him to use too little water, cutting corners on safe food preparation.
Water is essential to large corporations. Big national and international
companies rely on a consistent water supply to process their
products. If the Honduran government cannot ensure a constant
water supply or if it raises water usage prices for the banana
company, the company may decide to move, leaving Mario without
a job.
Clean water is becoming increasingly valuable and hard to come
by as businesses demand more and more of it. The growing scarcity
of water raises difficult questions for developing countries:
Water is essential for economic development, so who should have
priority in obtaining it? Should the government support Make
Sibambo’s one-woman ice business by offering a cheap hook-up
and subsidized water rates? Should the government demonstrate
preference for the multinational banana company, which provides
jobs for hundreds? Who will pay the real cost for water services?
Businesses affect the water supply.
Make’s refrigerator breaks, but she lacks the means to
repair it or remove the equipment from her property, which is
adjacent to a stream. She discards the broken refrigerator in
her back yard, where it begins to decompose.
Deepa washes clothes with a phosphate-based detergent. The detergent
washes downstream, where another village obtains its drinking
water. Umar’s restaurant is one of many local businesses
that use a lot of water. In the middle of the day the town’s
water supply often runs dry, leaving residents without drinking
water.
Mario uses almost fifteen kilos of water to wash one kilo of
bananas. He notices that the runoff is deposited into a nearby
river that feeds into the ocean. He wonders how this pesticide-and-fertilizer-laden
water affects the fishing industry in his coastal hometown.
Many business endeavors potentially harm the water supply. Who
should regulate them, and how? At what point should a business
be held responsible for polluting? Should Deepa be charged, or
should only the multinational banana company be held accountable?
Business must be on board if countries are to have safe water.
According to the World Business Council for Sustainable Development,
global water use can be divided into three major areas: about
70 percent is put to agricultural use; 20 percent is used by
industries; and 10 percent is consumed by households. Therefore,
90 percent of water use (not taking into account subsistence
farming) could be classified as being used for business purposes.
How businesses use water is the single most important factor
in influencing the availability and condition of the world’s
freshwater resources. If the world’s population is to have
access to safe water, business at all levels—from home
enterprises to multinational corporations—must be on board
in making it a priority.
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