{"id":39727,"date":"2025-03-28T10:42:48","date_gmt":"2025-03-28T08:42:48","guid":{"rendered":"https:\/\/www.wearewater.org\/?post_type=waw_insight&p=39727"},"modified":"2025-03-28T14:47:24","modified_gmt":"2025-03-28T12:47:24","slug":"solidarity-pays-off","status":"publish","type":"waw_insight","link":"https:\/\/www.wearewater.org\/en\/insights\/solidarity-pays-off\/","title":{"rendered":"Solidarity Pays Off. And Cooperation is an Economic Asset"},"content":{"rendered":"
\"We

Investing in the most vulnerable areas is not just an act of solidarity but a strategy that benefits everyone.\u00a9 Carlos Garriga \/WAWF<\/span><\/p>\n<\/div><\/div>\n\n

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The Trump administration’s announcement of the closure of the United States Agency for International Development (USAID) has had a significant impact on the international community. With an annual budget of $40 billion, USAID is the world’s largest development agency, accounting for 40% of global humanitarian aid funding across more than 130 countries. Its potential disappearance has raised alarms within the United Nations, whose aid programs received a total of $72 billion in 2024, largely from U.S. contributions.<\/span><\/p>\n

Regardless of whether the agency’s closure materializes, the new U.S. stance on international cooperation and the 2030 Agenda has put multilateral humanitarian aid at risk. This collaborative model\u2014built on joint action by governments, international organizations, and NGOs\u2014has long guided global efforts to support the most vulnerable communities. Its weakening raises pressing questions about the future of international assistance in an increasingly interconnected world.<\/span><\/p>\n<\/div><\/div>

\"We

Access to water, sanitation, and hygiene improves public health, preventing epidemics and saving countless lives. <\/span>\u00a9 Dominic Chavez\/World Bank<\/span><\/p>\n<\/div><\/div>\n\n

We All Benefit from Investing in Aid<\/h2><\/div>

Regarding climate change\u2014another issue downplayed by the new U.S. policy\u20142024 has reaffirmed the consensus among experts on the need for private sector participation in financing aid efforts.<\/span><\/p>\n

At the recent World Water Week, <\/span>we witnessed<\/span><\/a> the development of financing strategies discussed at the <\/span>Water for Climate Pavilion<\/span><\/a> during COP29. There, it was highlighted that the world must mobilize up to $7 trillion by 2030 in global water infrastructure if we are to meet our SDG commitments related to water and recover from decades of delays. The financial return on climate adaptation investments was also emphasized: every $55 billion allocated to prevention could yield savings of $245 billion in costs.<\/span><\/p>\n

The data reflects similar returns in the water sector. Every year, the lack of access to water and sanitation results in $260 billion in global losses. Estimates indicate that every $1 invested in water generates a return of $4. Additionally, European insurance companies say every $1 invested in <\/span>disaster prevention<\/span><\/a>\u2014such as droughts and floods\u2014could yield up to $15 in return.<\/span><\/p>\n

This scenario is theoretically promising for advancing the cooperation principles of <\/span>SDG 17<\/span><\/a>, particularly Target 17.17, which calls for fostering and promoting effective partnerships between the public, private, and civil society by leveraging each actor’s experience and resources.<\/span><\/p>\n

However, there is still a long way to go when it comes to water financing. Currently, nearly 91% of annual water expenditures come from the public sector\u2014including governments and state-owned enterprises\u2014while less than 2% come from the private sector.<\/span><\/p>\n

The fight against drought is especially urgent. Last October, the call for increased private sector participation was unanimous during the <\/span>Drought Resilience +10 Conference<\/span><\/a>, organized by the World Meteorological Organization (<\/span>WMO<\/span>) and the\u00a0 <\/span>FAO<\/span><\/a>.<\/span><\/p>\n<\/div><\/div>\n\n

The Return is a Global Benefit<\/h2><\/div>

The <\/span>private sector<\/span><\/a> has largely recognized that developing sustainability in aid is also an economic investment. Beyond financial returns, the social impact of these investments fosters stability\u2014a key factor for sustainable development and long-term global benefits.<\/span><\/p>\n

We have identified the fundamental pillars that sustain these benefits based on our experience working on 109 projects across 40 of the world’s most vulnerable countries. Our collaboration with governments, <\/span>UNICEF, and nine NGOs<\/span><\/a> allows us to summarize them as follows:<\/span><\/p>\n