Economics Report: The Water Crisis and Scarcity in South Africa

This economics report provides an overview of the water crisis in South Africa, highlighting the country's severe water scarcity and its impact on various cities, particularly Cape Town. The report discusses the causes of the crisis, including climate variability, population growth, and mismanagement of water resources. It examines the economic aspects, such as the concept of public goods and the prisoner's dilemma, and analyzes the government's efforts to manage the crisis through restrictions and conservation measures. The report also touches upon the role of climate change and the challenges faced by South Africa in achieving water security, referencing the peak of the crisis during 2017-2018. The report provides a concise overview of the water crisis in South Africa and its economic dimensions.

Running head: ECONOMICS
Economics
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ECONOMICS
Water crisis in South Africa
The water scarcity in South Africa have increased a lot from the year 2013. South
Africa is also referred to as the 30th driest country in the world. It has been found out that
since 2013, most of the cities in South Africa have been experiencing severe drought ad water
shortages. Currently, Cape Town requires its agricultural sector fore reducing its use o water
by sixty percent. The variability of the weather conditions in South Africa is one of the
reasons behind the water shortage which made it a water stressed country. This place is
known to face with huge number of challenges that makes it quite difficult for achieving
water security. One of the biggest challenges is the huge growth in the population which lead
to rise in the demand for water. There is also corruption and mismanagement of water
resources which leads to public mistrust. The water scarcity is known to be one of the leading
world’s problem affecting more than 1 billion people globally (The Conversation. 2019). The
climate change is one of the major reasons which made Africa vulnerable to water scarcity.
The water scarcity can be both mand made as well as natural which is therefore divided into
economic scarcity and physical scarcity. The region of Sub Saharan Africa along with
Northern Africa are moving towards Millennium Development Goal. The huge rise in
population, rural urban migration along with the severe poverty issues have made South
Africa one of the least developed region.
The water crisis in Cape Town peaked during the 2017 and 2018 where the water
levels lingered around 15 to 30 percent. The government have therefore known to have
implemented significant restrictions on water for curbing the usage of water and have also
succeeded in reducing its daily usage of water. The decline in the water combined wit strong
rain led to increase in the water level in dam, indicating the end of the worst water crisis
(Valipour 2015). Cape Town was facing the issue of water shortage for a long time and had
been severely affected during 2017 -18.

ECONOMICS
The prisoner’s dilemma illustrates the tension between the private and common
interest. Water is generally considered as the public good. The problem with public good is
that there exists a free rider problem since public goods are non exclusive and non revalrous
in consumption. The dominant strategy for each individual is that they does not want to co
operate. Therefore, when each player will be playing rationally, both the parties will be
gaining.

ECONOMICS
Reference list
The Conversation. (2019). Crisis proofing South Africa's water security. [online] Available
at: http://theconversation.com/crisis-proofing-south-africas-water-security-106261 [Accessed
11 Apr. 2019].
Valipour, M., 2015. Future of agricultural water management in Africa. Archives of
Agronomy and Soil Science, 61(7), pp.907-927.