Catalyst #1: Establish Clear and Objective Rules

The first catalyst is plain - governments must establish clear, objective and consistent rules. As we've seen time and again, effective water governance is virtually a pre-condition for meeting water needs. Industry, non-governmental organizations and consumer groups can help set the tone for the discussion, but government must act.

Industry bears an enormous responsibility to society and the environment. But business leaders will make good long-term decisions on water management only if contracts are secure and the rule of law prevails.^[13]

The work of Professor Kader Asmal, the 2000 water laureate, is a case in point. He led water legislation reforms and aggressive new initiatives to ensure access to fresh water and sanitation in South Africa. Under Professor Asmal, policies and programs have been clear and consistent - everyone has a right to fresh water and adequate sanitation, and everyone has a responsibility for acting to protect and preserve the water supply.^[14]

Unfortunately, Dr. Asmal's vision is sadly lacking in many parts of the world, and the consequences of poor water governance are clear. Private sector companies do not invest in nations where corruption is rampant, where commercial legal institutions are inadequate, where there has been a pattern of defaulting on loans, or where the risks of currency rate fluctuations are high due to poor macro-economic policy.^[15]

The private sector has invested 70 to 80 billion dollars in water projects around the world, including more than 25 billion dollars in developing countries. To meet current and future needs for water, investments in water resources must increase to 180 billion dollars. That increase will not happen without good water governance.^[16]

I call on every industry leader to support clear and consistent rules and water policies. We must support the visionary efforts of leaders like Professor Asmal.