Asia has achieved impressive growth ineconomic and social welfare during the last decades. Good water management and human capital development remain vital to support economic growth and increase overall social wellbeing in Asia and the Pacific, especially after the coronavirus disease 2019 (COVID-19) pandemic. 

Despite the achievements in Asia and the Pacific (home to 60% of the world’s population), 1.5 billion people living in rural areas and 0.6 billion in urban areas still lack adequate water supply and sanitation. Of the 49 Asian Development Bank (ADB) members from Asia and the Pacific, 27 face serious water constraints on economic development, and 18 are yet to sufficiently protect their inhabitants against water-related disasters. 

This Asian Water Development Outlook (AWDO) report describes the water security status in Asia and the Pacific. Water security in AWDO is the availability of adequate water to ensure safe and affordable water supply, inclusive sanitation for all, improved livelihoods, and healthy ecosystems, with reduced water-related risks toward supporting sustainable and resilient rural–urban economies in the Asia and Pacific region. AWDO has been tracking water security in the region since 2013. 

In 2007, ADB conceptualized AWDO with the Asia-Pacific Water Forum. The AWDO 2007 report described the need for water security in the region, pointing out that inappropriate management practices, rather than water scarcity, are the main cause of water insecurity. The AWDO 2013 report provided the first quantitative and comprehensive review of water security by using a water security framework with five key dimensions (KDs), as illustrated in the figure—rural household water security, economic water security, urban water security, environmental water security, and waterrelated disaster security. AWDO 2016 and AWDO 2020 further developed this framework. All KDs are equally important (no weights applied), and the order does not reflect a priority. 

Water security is expressed in scores, calculated for each KD based on public data on various indicators describing the KD’s performance. The scores of all five KDs are added to form the multidimensional national water security (NWS) score. Banding is applied to these scores to indicate the following NWS and KD development stages: nascent, engaged, capable, effective, and model. None of the 49 ADB members from Asia and the Pacific have achieved the model stage yet, not even the Advanced Economies group. The first two stages (nascent and engaged) place serious constraints on the needed economic and social welfare. Ultimately, ADB members strive to achieve a higher NWS stage. This report presents the results for each ADB member and by the ADB-classified regions: Central and West Asia, East Asia, the Pacific, South Asia, Southeast Asia, and Advanced Economies.  

The five KDs of AWDO have strong links with several Sustainable Development Goals (SDGs). Improving water security in each KD has a direct impact on various SDGs. KD1 and KD3 link with target 6.1 (access to safe drinking water) and target 6.2 (access to safe sanitation) of SDG 6 (Clean Water and Sanitation). KD2 contributes to SDG 2 (Zero Hunger) and SDG 7 (Affordable and Clean Energy). KD4 and KD5 link with SDG 3 (Good Health and Well-Being), SDG 14 (Life below Water), and SDG 15 (Life on Land). 

Performance and Policy Recommendations 

Each KD performance is scored on a scale of 1–20. The scores are presented in the figure below, in which the ADB members are sorted according to their overall score.  

National Water Security. Combining the five KDs results in overall water security. No weighting is applied over the five KDs, meaning that a country lagging in one KD might be compensated by its good performance in another KD. Only one economy (Afghanistan) is still in the nascent stage in 2020 (compared with four ADB members in 2013). The number of ADB members in the nascent and engaged stages cumulatively decreased from 30 to 22, while the number of ADB members in the capable and effective stages increased from 19 to 27. There are no ADB members yet in the model stage for the overall NWS. By improving the performance of the five KDs through adequate policies, ADB members can move up from nascent to engaged to capable to effective and ultimately to model. Political choices will determine the priorities in the KDs. During 2013–2020, good progress has been made in KD1 (Rural Household), KD2 (Economic), and KD5 (Disaster), while improvement in KD3 (Urban) and KD4 (Environment) has been slower. 

KD1: Rural Household Water Security. All regions show steady progress in improving rural household water security. East Asia and Southeast Asia perform well, while the Pacific and South Asia lag behind. Twenty-three ADB members are still in the nascent and engaged stages (compared with 28 in 2013). The number of ADB members in the effective and model stages has increased from 7 to 13. Increasing rural household water security is paramount in the Asia and Pacific region, given that nearly half of households in the region are still living in rural areas despite urbanization trends. Rural households are more vulnerable, and investing in water and sanitation for rural households is generally less attractive than economic uses like agriculture. AWDO 2020 provides the following policy recommendations related to KD1: 

• Engage vulnerable people in decisionmaking. Despite specific policies in some ADB members, the needs of vulnerable people are not being addressed. 

• Invest in human resources capacity. Human resources appear to be a major constraint on implementing water and sanitation policies. Governments must invest in the human resources required to deliver water services. Special attention should be given to youth and women. 

• Deliver locally appropriate solutions for ADB members in the Pacific. The Pacific region is lagging, and relatively little progress had been made since 2013. Their specific geographic and financial situation requires tailored approaches. 

KD2: Economic Water Security. East Asia has experienced a significant increase in economic water security and has now achieved the same level as Advanced Economies. All other regions also show good progress except the Pacific, where eight ADB members are still in the nascent stage. With 32 ADB members still in the nascent and engaged stages, 2.1 billion people face serious limitations in their economic activities due to insufficient water management. The number of ADB members in the effective stage has increased from three to four. Despite this progress, ADB members need to continue investing in water resource systems that provide the services required to cope with socioeconomic and demographic growth and climate change pressures. The following policy recommendations are relevant for KD2: 

• Enhance water resources monitoring, measurement, and data availability. Optimizing water resources management requires good data and data availability on supply, demand, quality, benefits, and costs, among other things. Water should be promoted as an economic input to production, and its value accounted for. Data are instrumental in making decisions in investments and developing innovative ways to manage the system. 

• Improve water productivity. As water becomes increasingly scarce while demand is rising, water should be used as efficiently as possible by promoting robust water allocation regimes, water reuse, conservation practices, and information technology. 

• Ensure adequate storage and distribution mechanism. This should be done while promoting integrated water resources management (IWRM) and investing in climate change adaptation and resilience. As water availability is often not at the right location and time, water must be stored and transported. Storage, including through wetlands and nature-based solutions, is also necessary to mitigate flood and drought risks and adapt to climate change. An integrated approach is needed to develop and manage the system. Institutional arrangements must account for the integrated nature of water management across sectors and disciplines. 

KD3: Urban Water Security. The level of urban water security has remained about the same during 2013–2020. Urban water security in East Asia has nearly reached the same level as the Advanced Economies. The Pacific region is lagging. Seven ADB members are still in the nascent stage, while 18 are in the engaged stage, which means that 800 million urban people do not have adequate water supply and sanitation services. Despite the major investments ADB members made, KD3 has remained constant mainly due to rapid urbanization. The rapid growth of urban centers and peri-urban areas, along with climate change impacts, creates significant challenges for the provision of water, wastewater, and stormwater infrastructure. The following policy recommendations are relevant for KD3 to meet these challenges: 

• Invest in sanitation, wastewater treatment, and circular economy. Combining the challenges in water supply and sanitation might offer possibilities to solve both problems conjunctively, e.g., by direct and indirect potable wastewater recycling and reuse. 

• Improve water cost-effectiveness and affordability. Affordability has improved over time (e.g., in the Pacific, East Asia, South Asia, and Southeast Asia) or remained stable. Innovation is needed particularly in the Pacific, where affordability is significantly worse than in other regions. 

• Improve drainage security in the Pacific, Central and West Asia, and Southeast Asia. This improvement requires both an enhanced understanding of the flooding risks in urban areas and larger investments in catchment management, often combining green and gray solutions. 

KD4: Environmental Water Security. KD4 shows a mixed picture. On the one hand, the number of ADB members in the capable and effective stages has increased from 20 in 2013 to 31 in 2020. On the other hand, 18 ADB members are still in the nascent and engaged stages. Southeast Asia scores well and is nearly at the same level as the Advanced Economies, with the Pacific region scoring above average. South Asia is lagging behind other regions. Restoring and maintaining the health of rivers, wetlands, and groundwater systems is vital for improving KD4 performance and also contributes to other KDs (particularly KD2 and KD3). The following policy recommendations are made toensure sustainable environmental water security: 

• Improve pollution load management and stimulate circular economic activities. This includes reducing inefficient agricultural practices, e.g., overuse of fertilizers, leading to the deterioration of water quality in surface and groundwater systems. Treatment and reuse of wastewater from household and industrial systems will reduce the amount of untreated wastewater released into the natural systems while addressing water scarcity. 

• Increase the protection of natural terrestrial and aquatic systems. This includes the conservation of riparian vegetation, which can filter fertilizers and excess sediment runoff from nearby agricultural operations. 

• Implement measures that make hydrological alteration more sustainable and promote riverine connectivity. Flow alteration of river and wetland systems is a primary cause of reduced aquatic ecosystem health. ADB members with comparatively poor outcomes for hydrological alteration could be supported to develop locally specific environmental flow programs. 

• Reduce groundwater depletion. Twenty ADB members received the worst possible rating for groundwater resource sustainability. Solving this issue requires proper aquifer mapping, licensing and compliance enforcement, and regulatory and economic incentive measures for water conservation. 

KD5: Water-Related Disaster Security. All regions, except South Asia, show good progress in waterrelated disaster security. South Asia experienced some major disasters in the last 10 years, which influenced their score negatively. In 2020, 18 ADB members are still in the nascent and engaged stages, slightly down from 20 in 2013. Compared with only 11 ADB 

members in 2013, 19 ADB members are already in the effective and model stages in 2020. Climate change is likely to increase climate variability and the probability of floods and droughts. The following policy recommendations are made to mitigate these risks: 

• Invest in green and gray disaster infrastructure. Green infrastructure refers to nature-based solutions, while gray infrastructure consists of traditional constructions. Capital-intensive investments are needed to address present problems and mitigate increased risk due to climate change. Public finance for such investment should be paired with alternative financing sources by crowding in commercial finance or climate adaptation financing. Blended financing can help mobilize private sector financial resources. 

• Address gender gaps. Water-related disasters disproportionately affect marginalized groups, particularly women. More action is needed to analyze and identify gender-specific interventions. Governments should ensure that the most disadvantaged women have access to resilience adaptation programs and funds. 

• Promote integrated flood risk management, including the piloting of nature-based solutions. Flood risk mapping, integrated land use planning, and early warning systems are cost effective investments to limit the exposure of people and assets to water-related risk. Investments in gray and green infrastructure and residual risk instruments are complementary measures. 

• Improve data collection, modeling, and associated system for preventive disaster risk management. As indicated in KD2 (Economic Water Security), good data are essential for decision-making on investments in disaster risk management. Agencies need to be equipped with modern facilities and techniques for collecting and assessing data. 

Governance and Financing Needs 

Achieving water security for all ADB members in Asia and the Pacific requires robust public policies across all levels of government, a clear allocation of duties among responsible authorities, as well as regular monitoring and evaluation mechanisms. At the same time, adequate financial means should be made available to implement the needed institutional and technical interventions, which require appropriate enabling environments to make the best use of available water resources, waterrelated assets, and financial sources. 

Governance. In AWDO 2020, the Organisation for Economic Co-operation and Development (OECD) has surveyed 48 ADB Asia and Pacific members using the 12 OECD Principles on Water Governance to shed some light on the governance gaps in the region.* Based on the survey’s outcomes, the following policy recommendations are made: 

• Stakeholder engagement should be prioritized in Central and West Asia, the Advanced Economies, and Southeast Asia. Efforts should be made using formal and informal consultation mechanisms. 

• Integrity can be improved in Central and West Asia and Southeast Asia by promoting legal and institutional frameworks to make decision-makers and stakeholders more accountable. 

• Trade-offs involved in developing and managing water resources need more attention in Central and West Asia, South Asia, East Asia, and the Pacific. Public debate on the risks and costs associated with “too much, too little, or too polluted” water is needed to face the current uncertainties. 

• Monitoring and evaluation should be improved in all regions with adequate institutional coordination. Promoting governance arrangements and helping water agencies across government levels raise the necessary revenues to meet their mandates should be prioritized, especially in the Pacific. 

Finance. The financing needs to achieve water security are enormous. ADB’s Strategy 2030 estimates the investment needs for water and sanitation to be on average $53 billion per year up to 2030, of which about one-third will be needed from the private sector. The OECD has analyzed the investment needs for water supply and sanitation (KD1 and KD3), irrigation infrastructure (part of KD2), and flood protection (part of KD5). The following policy recommendations—hich seem even more pressing in the context of the COVID-19 pandemic that affects utilities’ revenues and the fiscal capacity of most countries in the region summarize priorities toward the achievement of water security: 

• Make the best use of available assets and financial resources. Improving the operational efficiency and effectiveness of infrastructure and service providers or optimizing storage and conveyance systems can postpone new investments by extending the operational life of existing assets and providing better services. 

• Minimize future investment needs through policies promoting sustainable water resources management, water and wastewater infrastructure, policy coherence, cost-effective expenditure programs built on robust planning, and setting of priorities. Innovation can contribute to minimizing costs and optimizing investment and should be exploited in line with adaptive capacities. Applying nature-based engineering might reduce investment and maintenance costs. 

• Harness additional sources of finance. The huge investment deficit in the region requires leveraging financial resources from diverse potential sources. Governments need to increase contributions from polluters, users, and beneficiaries. They also need to increase reliance on domestic funds and attract private investments. Transitioning from concessional finance to crowding in commercial capital will be crucial. 

At the time of writing, the full consequences of the COVID-19 pandemic are yet to be understood. In the short term, the health crisis emphasizes the urgent need to secure access to safe water for households, health-care facilities, schools, and public places. Secure and continuous water supply is essential for effective hygiene practices such as handwashing with soap, one of the most effective infection prevention and control measures for COVID-19 and other diseases. At the same time, the unfolding economic crisis is putting additional constraints on public finance, households’ income, and utilities’ revenues. These developments confirm the relevance of the three policy recommendations mentioned above and call for a more detailed assessment of implementation. 

ADB Water Sector Framework and Focal Areas for Delivering ADB Support 

The vision of ADB’s water activities as formulated in the Strategic Directions for ADB Water 2030 is to achieve a water-secure and resilient Asia and the Pacific based on five integrating principles: 

(i) building resilience and adaptive capacity, (ii) promoting inclusiveness, (iii) embracing sustainability, (iv) improving governance, and (v) fostering innovation. Based on these principles, the following focal areas for delivering ADB support were formulated: 

• Water as a sustainable resource. Policy initiatives will continue to promote regulatory and incentive mechanisms for improved governance and sustainable management of surface- and groundwater resources with the ultimate goal to support economic growth, restore aquatic ecosystems, and improve livelihoods. 

• Investment in universal water access. Investing in universal and safe water services will be crucial, including access to reliable water supply and sanitation and sustainable wastewater management, appropriate to local conditions, through sewered and non-sewered, and centralized and decentralized systems. ADB will continue to support investments to createan enabling environment for private sector involvement and promote the circular economy approach by viewing waste as a resource. 

• Productive water in agriculture and energy. ADB’s irrigation investments will support diversified and higher value agriculture and more efficiency in water use to accelerate the contribution to rural revitalization and climate adaptation. Projects will be better integrated into a value chain approach and increasingly seek to ensure compatibility between energy and water resource planning. 

• Reduced water-related risk. ADB’s disaster risk reduction intervention will be integrated with other development programs, including livable cities and food security, by demonstrating risk-sensitive land use management approaches and nature-based solutions while integrating structural and nonstructural measures. This focal area includes developing clear strategies for building resilience to recurrent droughts and floods. 

Read More：Asian Water Development Outlook 2020: Advancing Water Security across Asia and the Pacific