Virtual Water Abstract
Abstract – Virtual water is defined as the water used in the production process of an agricultural or industrial product. The concept of virtual water has major implications on the global trade policy and research and has the potential to redefine the future of water policy and management across the globe. This paper gives an introduction to the concept of ‘Virtual water’, methods to quantify virtual water, discussions on the possible benefits and implications of public policy. Also two cases on the situation in Middle East and India are discussed to provide an idea about the use of virtual water in resolving water scarcity and disputes.
Keywords: Virtual water, water footprint, water trade Introduction:
The excessive use of water and the
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Complex systems can absorb shocks and adapt to imbalances - intervening in them will only delay the inevitable self-adjusting processes. The key limit to water availability and scarcity is redistribution. According to classical economists, the market takes care of optimal distribution through trade. Of course, the optimal utility curve does not necessarily mean an optimum on everyone's utility curve. Even without intervention, trade has its winners and losers.
The virtual water thesis, then, sees the world as one system, relying on the structural, self-adjusting forces in the global political economy, redistributing scarcity and thus preventing violent conflict over water. The scarcity of water in specific localities and the abundance on the world market of cheap food is thus a political as well as an economic choice, impinging on scarcity and distribution
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Economic and political power differentials lead to unequal distribution of vulnerability within global and domestic systems, in turn bringing about the social, political and economic exclusion of the poor and powerless. The virtual water thesis posits a self-restoring mechanism in a world out of equilibrium due to the sharply unequal global water distribution picture. But the assumption that equilibrium can be achieved or it will benefit all is
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