Middle East and Libya in a giant water Ponzi scheme

In the UK newspaper, the Guardian, writes:

…a perfect storm of water, food and energy crises and has arrived two decades sooner than even the most sober analysts expected. And while the Middle East is the first region to feel the wrath of that storm, across the world warning signs are flashing – from the sinking of Mexico City as its aquifers are sucked dry to the docking of freshwater tankers in Barcelona.

All these countries are  built on an environmental Ponzi scheme, using more water than they receive: 700 times more in Libya’s case. Like any household economy, if you pay our more than you get in you end up in a whole pile of trouble.

The article continues:

Ultimately, as appears to be happening in the Middle East, Ponzi schemes crash. Fresh or virtual water can be imported from distant rainy nations, but only at a price many cannot afford. The ultimate solution is as simple as it is challenging: plug leaks, recycle waste and treasure each drop. Only when the water consumed is less than the water falling from the sky will nations have stopped borrowing against tomorrow.

What is urgently needed is a the government to put a price on water extraction that encourages recycling. How to do this is explained in our white paper.

Natural resources and economy

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