An Introduction to Virtual Water


As of this point, my blog has largely focused on how the efficiency, scale and sustainability of agriculture across sub-Saharan Africa can be improved, in line with progress to achieve the ‘Zero Hunger’ sustainable development goal (SDG number 2). Within the next two posts, this blog will consider how trade in virtual water proposes an option to help improve food security without achieving agricultural self-sufficiency. Virtual water is defined as ‘the volume of water required to produce a commodity or service’ (Hoekstra and Chapagain 2007: 36), and was introduced by Allan as a conceptual trading strategy to solve issues of water scarcity in the Middle East (Allan 1993; Allan 2001). With food production accounting for nearly 80% of annual freshwater usage (Suweis et al. 2011), food imports are equivalent to importing virtual water (as opposed to real water) and reduce the pressure on domestic water resources. The scale of virtual water exportation is vast, making up approximately 19% of the global water footprint (Hoekstra and Mekonnen 2012). Global food trade is suggested to be a more efficient and sustainable model than self-sustenance, saving approximately 10% of global irrigation withdrawals (Dalin and Conway 2016).

How useful is the concept of virtual water?

The concept of virtual water captures the global relationship between trade, water and commodities, valuing the significant volumes of water used in agriculture to produce food. It encourages imports of virtual water to be considered as an exogenous source of water, providing an alternative to endogenous sources. Knowing the virtual water value of a commodity can help to determine how best to utilise scarce water resources in semi-arid and arid environments of sub-Saharan Africa. Valuing virtual water often poses a challenge with commodity prices based on a multitude of factors including labour content and transport costs, the concept consequentially lacks a sense of tangibility and grounding (Antonelli 2014). The concept provides no information about the sustainability of resource use for commodity production or trading, so it is limited in its ability to achieve the sustainability focused aspects of SDG’s 2 and 6. By nature, the concept ignores the factors causing local water stress or agricultural inefficiency such as politics, poverty and inequitable trading schemes.

Benefits of trading in virtual water:

Importing commodities with high virtual water content and exporting commodities with low virtual water content, a nation could reduce the amount of water resources it uses for agriculture at minimal cost.  Virtual water importation can also further help to alleviate water-stress by reducing agricultural water demands such as for irrigation. Multiple studies have highlighted how positive virtual water flow is a remedy to local water deficit or drought, suggesting it helps to increase food security and prevent famine through the redistribution of water resources in response to production gaps (Dalin and Conway 2016). Studies on virtual water trade in sub-Saharan Africa have noted how imports can alleviate the water-deficiency induced by precipitation variability, leading to decreases in undernourishment - a variable used by Konar and Caylor (2013) to proxy food security. Interestingly Karapinar’s (2011) study of Ethiopia found that the exportation of virtual water-intensive commodities does not actually contribute to food insecurity, largely because its water uses seldom competed with that required to produce food staples.

Drawbacks of trading in virtual water:

It is frequently suggested that virtual water in practice flows from cash-poor to rich countries. A global virtual water trading model developed by Susweis (et al.2011) shows that a few countries have access to vast trade networks affording them cheap and steady supplies of virtual water, whilst a larger number of countries have very few trade connections, making them significantly more vulnerable to market effects. Paternalistic characteristics are inherently linked with the concept as a result of the disproportionate access to trading connections, effectively denying poorly connected developing countries from making trade and economic decisions in their own interest (Allan 2003). Trading in virtual water also causes a disconnect between society and the natural resources they use, potentially reducing resilience in the face of severe drought (Paolo D’Odorico et al. 2010).

I hope this post has provided an interesting introduction to the concept of virtual water and its potential as a food security strategy. Whilst its usefulness as a concept and political strategy is highly contested, virtual water trading’s potential has often been considered by academics in the sub-Saharan Africa context. The next blog post will build upon these foundations and consider the potential value virtual water trading has in sub-Saharan Africa. I look forward to seeing you next time!


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