12. Global Change: Options for Reform

This chapter summarizes the main messages discussed in this volume on global changes affecting water and food security, draws conclusions, and identifies areas for future research and policy reform to help ensure water and food security now and in the future. The chapter attempts to provide partial answers to the key questions posed at the beginning of the volume. It examines, on the one hand, the impacts of key factors driving water and food security and the livelihoods of the poor and, on the other hand, how these processes of change can be used so as to improve water and food security for the poor. Key factors include population and economic growth, market integration, technological change, climate change and energy policy. Important processes to redress rising inequalities under global change include investments in pro-poor agricultural research, support of increased trade liberalization, while reducing non-tariff barriers for smallholder farmers and fishermen and women; payment for environmental services to help farmers internalize environmental externalities such as carbon or water pollution; and mechanisms to enhance knowledge transfers across borders, including enhanced South-to-South transfer. Moreover, support to local capital markets to support local financing of key water-for-food investments and multilateral investments in storage and water control facilities will also be important. Virtual water trade, while not a panacea to resolve the water crisis does move the cost of financing water to the exporter - generally developed countries - that are better placed to bear these costs. Finally, securing water access requires analysis and management of water resources taking into account policies within and outside of the water sector.