Virtual water

The virtual water trade (also known as embedded or embodied water) is the hidden flow of water in food or other commodities that are traded from one place to another. The virtual water trade is the idea that when goods and services are exchanged, so is virtual water. Virtual water trade allows a new, amplified perspective on water problems: In the framewond balancing different perspectives, basic conditions, and interests. Analytically, the concept enables one to distinguish between global, regional, and local levels and their linkages. However, the use of virtual water estimates may offer no guidance for policymakers seeking to ensure that environmental objectives are being met. For example, cereal grains have been major carriers of virtual water in countries where water resources are scarce. Therefore, cereal imports can play a crucial role in compensating local water deficit. However, low-income countries may not be able to afford such imports in the future which could lead to food insecurity and starvation. The virtual water concept, also known as embodied water, was coined by John Anthony Allan (Tony Allan) in 1993. He received the Stockholm Water Prize for the concept in 2008. The virtual water trade is the idea that when goods and services are exchanged, so is virtual water. When a country imports one tonne of wheat instead of producing it domestically, it is saving about 1,300 cubic meters of real indigenous water. If this country is water-scarce, the water that is 'saved' can be used towards other ends. If the exporting country is water-scarce, however, it has exported 1,300 cubic meters of virtual water since the real water used to grow the wheat will no longer be available for other purposes. This has obvious strategic implications for countries that are water-constrained such as those found in the Southern African Development Community (SADC) area. Water-scarce countries like Israel discourage the export of oranges (relatively water intensive crops) precisely to prevent large quantities of water from being exported to different parts of the world.