UN Warns of Global Water Bankruptcy

22 January 2026

By Nokusa Masuku

The world has entered a new era of “global water bankruptcy,” according to a flagship report released by UN researchers.

For decades, experts warned of a global water crisis, implying temporary shortages that could be managed. But Kaveh Madani, Director of the UN University Institute for Water, Environment and Health, says humanity is now rapidly depleting its natural water savings accounts.

The report shows that more than half of the world’s large lakes have declined since the early 1990s, and about 35 percent of natural wetlands have been lost since 1970.

Nearly three-quarters of the global population live in water-insecure or critically water-insecure countries, with around four billion people facing severe water scarcity for at least one month every year.

Droughts now cost an estimated $307 billion annually. The report urges a shift from crisis management to bankruptcy management, emphasizing protection of remaining water resources and policies aligned with real hydrological conditions.

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