As the global population races toward an estimated 10 billion people by 2050, the pressure on governments to secure food supplies, create jobs and sustain economic growth is increasingly converging around one strategic resource: water.
According to the World Bank Group, the future of global food systems may depend less on the absolute availability of water and more on how effectively countries manage and allocate it.
In its latest report, Nourish and Flourish, the World Bank argues that smarter water management could become one of the most important economic and development tools of the coming decades, helping countries increase agricultural productivity, strengthen livelihoods and improve resilience against climate-related shocks.
The institution warns that global agriculture is entering a period of mounting strain as populations grow by roughly 200,000 people daily while climate-driven water stress intensifies across several regions.
Yet the report challenges the long-standing narrative that the crisis is simply about water scarcity.
Instead, it points to deep global imbalances in how water resources are currently used for food production.
Some countries continue to underutilize abundant water resources, limiting agricultural growth, employment creation and export potential. Others, however, are overexploiting already scarce water supplies to sustain agricultural production, in some cases exporting crops that existing water systems can no longer sustainably support.
The World Bank says these distortions are largely the result of policy choices, weak planning frameworks and underinvestment in modern water systems rather than unavoidable natural constraints.
Water as an Economic Growth Driver
Beyond food production, the report positions water management as a major economic growth issue.
The World Bank estimates that sustainable irrigation systems alone could generate at least 245 million jobs globally, particularly in developing economies where agriculture remains a primary source of employment and household income.
In regions where rainfall patterns remain unpredictable, modern irrigation infrastructure could more than double agricultural yields, improving food availability while increasing farmer incomes and rural economic activity.
The institution argues that water should no longer be treated merely as an environmental or agricultural issue, but increasingly as a strategic economic asset capable of supporting industrial growth, job creation and long-term resilience.
This position aligns with growing concerns among policymakers that climate change, rising temperatures and erratic rainfall patterns could significantly disrupt food systems, especially across Africa and parts of Asia where economies remain heavily dependent on agriculture.
Three Strategic Shifts
The report outlines three major reforms countries must pursue to unlock the economic value of water systems.
The first involves stronger coordination and leadership across sectors.
According to the World Bank, countries that have successfully transformed agricultural water systems typically treat water as a strategic national priority, bringing together ministries responsible for agriculture, finance, environment and water resources under a unified policy vision.
The second shift focuses on restructuring incentives and public spending.
The report criticises systems where government support encourages inefficient water use or focuses narrowly on infrastructure construction without improving long-term service delivery.
Instead, it advocates performance-based systems that strengthen accountability while attracting greater private-sector investment into irrigation, treatment and water distribution infrastructure.
The third priority centres on technology and data.
The World Bank argues that many water management decisions are still being made using incomplete information, reducing efficiency and limiting long-term planning.
Expanding access to satellite monitoring, digital irrigation systems and open-data platforms could significantly improve water allocation, conservation and productivity.
Countries Already Adapting
The report highlights several countries already implementing reforms aimed at improving water productivity and agricultural resilience.
In Jordan, public-private partnerships around the As-Samra wastewater treatment project are helping expand treated water supplies for irrigation and productive economic activities.
In Nigeria, the Transforming Irrigation Management Project has expanded irrigated farmland while introducing more efficient irrigation practices, producing enough crops to feed nearly one million people, largely within rural farming communities.
Meanwhile, Türkiye is modernising irrigation systems by replacing open canals with underground piped infrastructure designed to reduce water losses and protect groundwater reserves.
The World Bank says such examples demonstrate how countries can simultaneously improve food production, conserve water resources and strengthen rural economies when investment, regulation and technology are properly aligned.
Beyond Agriculture
The institution’s broader strategic initiative, known as Water Forward, seeks to reposition water from being viewed primarily as a source of environmental risk toward becoming a driver of resilience, productivity and economic opportunity.
The report ultimately argues that the future challenge is not simply about producing more food, but making more strategic decisions around how water, agriculture and investment interact.
For developing economies in particular, the stakes are high.
Poorly managed water systems threaten food security, economic stability and employment creation at a time when populations continue to rise and climate pressures intensify.
But the World Bank maintains that with smarter policies, stronger institutions and targeted investment, countries can build food systems capable of supporting both economic growth and long-term sustainability.
