Unveiling the nexus between water scarcity and socioeconomic development in the water-scarce countries

Ensuring universal access to water is a global goal, closely intertwined with the achievement of many other sustainable development goals. The increasing global demand for water, however, poses serious risks to the sustainability of our water supplies. Reduced food security, environmental degradation, economic productivity losses, reduced incomes, poor health, and impeded education, especially for children, are only some of the many consequences of water scarcity. Therefore, to measure water deficiency, the study constructed an improved Water Poverty Index (iWPI) using multivariate Principal Component Analysis (PCA) analysis. The iWPI takes into account dimensions of water resource availability, water access, societal capacity to address water-related issues, water-use patterns, and environmental water needs. The findings indicate that the capacity component holds the greatest significance in the iWPI, followed by resources. Multiple regression analysis to examine the impact of water scarcity on socioeconomic development revealed that access to water and the ability to manage water resources have the greatest impact on the countries' levels of socioeconomic development. The research upholds the correlation between accessibility to water and socioeconomic development and thus can be used for policy prescriptions for improving the socioeconomic growth of nations through addressing the channels contributing to water poverty.