A new report from the World Bank highlights that 90 percent of the global population lives with degraded land, unhealthy air, or water stress. The study, titled "Reboot Development: The Economics of a Livable Planet," finds that restoring natural systems is possible and can deliver significant economic benefits.
The report points out that in low-income countries, eight out of ten people lack access to healthy air, water, and land. This situation creates major obstacles for economic growth and opportunity. According to the findings, deforestation disrupts rainfall patterns, dries soils, and intensifies droughts—resulting in financial losses worth billions of dollars. The report also discusses a "nitrogen paradox": while fertilizers help increase crop yields, their excessive use damages crops and ecosystems in some regions at an estimated cost of $3.4 trillion per year. Additionally, air and water pollution harm health, productivity, and cognitive development.
However, the report suggests that effective management of natural resources can create jobs and drive economic growth. For example, more efficient use of natural resources could cut pollution by up to 50 percent. Improving how nitrogen fertilizer is used on farms may yield benefits 25 times greater than the costs involved while also increasing crop production. Enhanced water and sanitation services are highlighted as lifesaving measures; specifically, chlorinating water at its point of use could prevent one-quarter of child deaths related to unsafe water. The introduction of "pollution markets" is described as highly cost-effective—each dollar spent generates between $26 and $215 in benefits.
“People and communities around the world are not just facing an environmental crisis, but an economic one. The good news is that solutions exist. If countries make the right investments now, natural systems can be restored, with substantial returns on growth and jobs,” said Axel van Trotsenburg, Senior Managing Director at the World Bank. “This report offers a new lens for looking at environmental challenges — not as constraints, but as opportunities for smarter development.”
The World Bank notes examples where countries have achieved economic growth without further damaging their environments. Three key areas are identified as essential: using real-time data such as air pollution monitors or satellite imagery to target problems; coordinating policies across sectors to avoid unintended consequences; and regularly evaluating progress so policies remain effective over time.
More information about the report can be found on the World Bank’s website (www.worldbank.org/en/publication/the-economics-of-a-livable-planet).