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Investing in Natural Resources in a Changing World (Part III of V)

Investing in Natural Resources in a Changing World (Part III of V)
– Why it is impossible to overstate the severity of the pending water crisis

Issues to be addressed in this research paper

Water is a critical and increasingly scarce resource. About 2.1 billion people do not have access to safe drinking water. Adding insult to injury, 2.4 billion people (almost one in three globally) have no access to proper sanitation. In fact, more people have a mobile phone these days than have access to a toilet. Due to unsafe water and precarious sanitation, about two million people die every year, most of them in sub-Saharan Africa (Exhibit 1).

Exhibit 1: Share of deaths from unsafe water sources in 2017
Source: OurWorldinData.org

Climate change is altering patterns of weather and water systems around the world, causing scarcities and droughts in some areas and floods in others. Although bad consumer attitudes are partly to blame, this research paper is not about picking on bad consumer attitudes in certain countries. First and foremost, over the next few pages, I will zoom in on the countries that look to be in the biggest trouble, and I will suggest some ways to address a truly global problem.

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About the Author

Niels Clemen Jensen founded Absolute Return Partners in 2002 and is Chief Investment Officer. He has over 30 years of investment banking and investment management experience and is author of The Absolute Return Letter.

In 2018, Harriman House published The End of Indexing, Niels' first book.